Key facts
- New measures aim to address stock market manipulation and opaque trading.
- Independent parties will join a committee determining stocks with concentrated ownership.
- MSCI had warned of a potential demotion from 'emerging' market status.
- The IDX will investigate coordinated trading and freeze suspicious investor accounts.
- Share buyback policy extended to June 2027, with minimum free-float rules.
- President Prabowo Subianto accused MSCI of attempting to intimidate Indonesia.
Indonesia announced new measures on Monday to combat stock market manipulation, including expanding a committee that identifies stocks with concentrated ownership to include independent parties like academics and a foreign investor representative. The move comes after MSCI warned it could demote Indonesia's stock market status due to concerns over opaque trading practices. The Indonesia Stock Exchange (IDX) also plans to investigate coordinated trading and freeze suspicious accounts, a more proactive approach than its previous methods. A policy allowing share buybacks without shareholder approval has been extended until June 2027. President Prabowo Subianto stated that MSCI was attempting to intimidate the country.